AfDB predicts Zimbabwe’s economic recovery

BY ZBC Reporter

The African Development Bank (AfDB) is predicting Zimbabwe’s economy to recover next year after the negative effects of Covid-19 on production this year.

In its latest African Economic Outlook 2020 report, the AfDB says Zimbabwe can emerge from the current health and economic crisis strong based on its vast natural resources, public infrastructure, skilled labour force as well as fiscal and monetary policy interventions.

University of Zimbabwe Economics lecturer, Professor Albert Makochekanwa says the modest recovery forecast will also depend on the country’s ability to stabilise the foreign exchange market and control inflation.

“There are some key indicators that need to be solved head-on so that the anticipated projections can become a reality for the benefit of the economy.”

With the AfDB recommending the government to avail more resources for health, education and poverty eradication, Pan African Chamber of Commerce Board Member, Mr Langton Mabhanga says the mid-term fiscal budget review should also provide confidence rebuilding measures.

“It all depends on how the relevant systems can be modeled in a manner that considers the basic economic needs of the nation in the short to long term.”

According to the AfDB report, the outlook for recovery remains uncertain for most developing economies.